Objective 4.07
Position venture/product to acquire
desired business image
Term
A unique selling proposition (USP) is a description of the
qualities that are unique to a particular product or service
and that differentiate it in a way which will make customers
purchase it rather than its rivals.
http://www.economist.com/node/14301696
Purpose of a Business’s Unique Selling
Proposition (USP)
Having a USP will dramatically improve the positioning and
marketability of your company and products by
accomplishing 3 things for you:
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Unique - It clearly sets you apart from your competition,
positioning you the more logical choice.
Selling - It persuades another to exchange money for a
product or service.
Proposition - It is a proposal or offer suggested for
acceptance.
http://www.interactivemarketinginc.com/unique-selling-proposition.html
Importance of Always Fulfilling a
Business’s USP
Your success is directly related to how well you acknowledge
what your customers really want AND how diligently you
apply your company’s
1. Strengths
2. Values
3. Passions
4. Vision
http://www.how-to-branding.com/Unique-Selling-Proposition.html
Businesses should highlight it's strengths and convey a
message that will instill confidence and comfort in its
customers.
http://www.small-business-software.net/unique-selling-proposition.htm
Questions to ask to Facilitate Creation of a
Business’s USP
Here are several questions to ask about your business to determine a USP:
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What is unique about your business or brand vs. direct competitors?
You'll probably find a whole list of things that set you apart; the next
questions will help you decide which of these to focus on.
Which of these factors are most important to the buyers and end users of
your business or brand?
Which of these factors are not easily imitated by competitors?
Which of these factors can be easily communicated and understood by
buyers or end users?
Can you construct a memorable message of these unique, meaningful
qualities about your business or brand?
Finally, how will you communicate this message to buyers and end
users? Marketing tools to communicate USPs include media advertising,
promotion programs (e.g., direct mail), packaging, and sales personnel.
http://www.bizfilings.com/toolkit/sbg/marketing/overview/business-success-depends-upon-successful-marketing.aspx
Ways that a Business Can Integrate its
USP into its Marketing Efforts
Variations of your USP will be included in the ALL your
marketing materials such as in:

Advertising and sales copy headlines;
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Business cards, brochures, flyers, & signs;
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Your "elevator pitch", phone, and sales scripts;
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Letterhead, letters, & postcards;
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Website & Internet marketing.
http://www.interactivemarketinginc.com/unique-selling-proposition.html
Procedures for Identifying a Business’s
USP
To create the kind of powerful USP that will cause consumers
to notice your product, prefer your product, and pay a
premium for it, three criteria are needed:
1. You must make a proposition to the consumer that says,
“Buy this product and you will get this specific benefit.”
2. The proposition must be one the competition either
cannot, or does not, offer.
3. The proposition must be so strong that it can move your
target audience to action.
Procedures for Identifying a Business
USP
Examples:
Slogan: "Have it your way" - Burger King
What they are really saying: We care about you, what you
want matters to us. We are willing to do things different just
for you, our customers are special to us.
Slogan: "Keeps going and going and going" - Energizer
Batteries
What they are really saying: Our batteries are superior to
our competition, no one else has batteries that last as long
as ours.
Slogan: "Can you hear me now?" - Verizon
What they are really saying: Unlike our competitors, our
cellular coverage is very reliable. You will not experience
dropped calls or spotty coverage if you use our services.
Significance of Business Location to The
Success of Some Businesses
Know your business
Will customers visit your location? Do you anticipate walk-in business, or
will customers call for appointments? Does your business make use of
natural resources? How are your goods delivered? Does your business
involve chemicals or excessive noise that might fall under the zoning
restrictions? Make a list of your business-specific needs.
Find your customers
Identify who your customers are and how you can best meet their needs
Contact local and state agencies for their input
Create your own demographic profile after you collected information
Get a flavor for the community
Investigate the community
Read some of the local newspapers
Speak with other small business owners in the area
Visit the library and do some research on the history of the place
Significance of Business Location to The
Success of Some Businesses
Scope out the competition
You may want to know how many similar businesses are located
nearby
Do a competitive analysis, and if you scope out competitors, see if
you can gain a competitive edge by offering something your
competition does not
Consider traffic and accessibility
Parking, foot traffic, automobile traffic, and sidewalk accessibility are
all important things to consider
Business that do not have customers driving to your location, then
traffic and accessibility are an issue only for your employees
Significance of Business Location to The
Success of Some Businesses
Assess the building
Before signing a lease or purchasing agreement ask the
following questions:
How old is the building? How old is the roof? Is everything up
to code? Has the electrical system been improved lately?
Can it handle your technological needs?
Balance cost with other factors
Cost of the location is important to consider, but be sure to
look at the big picture
Spending more on a good location will probably pay off in the
long run with lots of business
http://www.allbusiness.com/operations/facilities-real-estate-office-leasing/11153-1.html#axzz2AFuWq6t4
Factors That Should Influence The Choice of
Business Location
Whatever the business, there are several general factors that
influence the choice of location. These are:
Communications: This includes transport facilities (road, rail, air)
as well as information infrastructure. Transport links are
particularly important if the business delivers products, sells
direct using a sales force or is dependent on import and export.
Information technology is less of an issue these days – most
start-ups can quickly establish reliable broadband Internet
connections.
Labour: When a start-up needs to hire employees, then access to a
reliable pool of staff with relevant skills is important. Businesses
that are labour-intensive often look to locate in areas of
traditionally low wages.
Factors That Should Influence The Choice of
Business Location
Market - customers & population
A start-up may need to be located near particular centers of
population. For example, if the product is a service targeted
at affluent older-aged people, then it is important to be
located where there is a sufficient population of such
people. Franchise businesses often analyze the population
characteristics of a potential new territory before setting up
in a new location.
Factors That Should Influence The Choice of
Business Location
Suppliers
The business may be dependent on supplies of a
particular raw material, so costs will be lower if the
business is located near the source of supply (e.g.
where the raw material is grown or where a distributor
is based). This factor tends to be more important for
manufacturing businesses rather than service
businesses.
Factors That Should Influence The Choice of
Business Location
Government assistance
Government policy has often been designed to influence
the locations of new businesses. If the start-up is
“location-independent” (i.e. the other factors above
don’t really make a difference to the choice of location),
then it may be that deals and incentives offered by
Government can influence the choice.Some poorer
areas of the UK are designated as “assisted
areas”. These include many parts of north-east
England, Wales, East Yorkshire, Cornwall etc. Locating
a new business in one of these areas potentially makes
government grants and loans available.
Legal Constraints in Business Location
Local zoning ordinances and regulations are important
considerations when choosing your business location
commercial building cannot be built in a residential
neighborhood and vice versa, unless there is a change in
zoning ordinances
http://www.sba.gov/content/basic-zoning-laws
Resources That Can Assist in Selecting a
Business Location
Local community resources such as:
SBA Offices,
Small Business Development Centers,
Women’s Business Centers,
other government-funded programs specifically support small
businesses.
http://www.sba.gov/content/tips-choosing-business-location
Procedures for Selecting a Business
Location
1. Determine your needs: Most businesses choose a location
which exposes them to potential customers and consider
the following:
Brand Image – Is the location consistent with the image you
want to maintain
Competition – Are the businesses around you
complementary or competing?
Local Labor Market – Does the area have potential
employees? What will their commute be like?
Procedures for Selecting a Business
Location
Plan for Future Growth – If you anticipate further growth,
look for a building that has extra space should you need it.
Proximity to Suppliers – They need to be able to find you
easily as well.
Safety – Consider the crime rate. Will employees feel safe
alone in the building or walking to their vehicles?
Zoning Regulations– These determine whether you can
conduct your type of business in certain properties or
locations. You can find out how property is zoned by
contacting your local planning agency.
Procedures for Selecting a Business
Location
2. Evaluate your finances
Be aware of hidden costs-includes costs like renovation,
decorating, IT system upgrades
Taxes – what re the state and income taxes for location?,
what about property taxes? Are taxes cheaper across a
nearby state line?
Minimum Wage – view Department of Labor's list to state's
minimum wage rate
Government Economic Incentives – Does your business
qualify for ggovernment economic business programs?
Procedures for Selecting a Business
Location
3. Is the area business friendly?
Need to understand laws and regulations in location
Check wit state government and local community to
determine what programs are offered to small business
4. Bottom Line
Do research, talk to other business owners and potential
http://www.sba.gov/content/tips-choosing-business-location